The “Blue Curve” won the vote and what this means for Nimiq
Nimiq stakeholders started voicing their opinions regarding the possible need to make adjustments to the NIM supply curve and its inflation towards the end of last year. After hearing the concerns and researching the matter in depth, Team Nimiq implemented a voting procedure to ensure the decision process was going to be democratic, transparent, and educated. On June 8 2020, a decision was reached through this process: the "Blue Curve" came out ahead by a large margin in a final vote in which more than 1.27 billion NIM were signed for. You can find the results here.
If you want to learn more about the process that brought us here, you can read the following resources:
The "Blue Curve" had been labeled "the balanced one" since its characteristics struck a good balance between the other suggested options. This curve followed from community suggestions and appears to be an adequate compromise between initial scarcity and reward amounts and how these evolve in time. It provides a healthy, while competitive, initial staking reward rate range of 8.3%-5.5% for the network staking ratio range of 50%-75%.
Depending on the actual timing of the switch to PoS and Nimiq 2.0, the first year NIM supply growth (inflation) will be around ~4.1% and the reward will average around ~517 NIM per minute. The initial stock-to-flow ratio then comes to ~24. The total NIM emission/reward decreases by 1.47% every year. If you want to look at numbers yourself, you can use this spreadsheet. Below is a table summarizing the timeline characteristics of the NIM supply curve for Nimiq 2.0.
With the NIM supply curve for Nimiq 2.0 determined, Team Nimiq can finish implementing a staking calculator so current and potential new stakeholders can already do their own calculations and projections regarding upcoming staking. This also means Nimiq 2.0 can be picked up by popular staking reward listings on data driven Proof-of-Stake sites for visibility of Nimiq and comparison with existing staking coins.
Most importantly, we continue our path to Nimiq 2.0 by working on the PoS Albatross Testnet and planning the switching (fork) process. With the clarity of knowing which emission curve to transition to in Nimiq 2.0, the team can apply this decision to all aspects of development and communication. More information regarding the roadmap to Nimiq 2.0, and the actions that need to be taken by miners and pool operators to switch to validators for staking, will be released in time.
Last not least a big thank you to our amazing community and all stakeholders that participated in making this important decision. The most exciting times are ahead of us!
DISCLAIMER: None of the statements must be viewed as an endorsement or recommendation for Nimiq, any cryptocurrency, or investment product. Neither the information, nor any opinion contained herein constitutes a solicitation or offer by the creators or participants to buy or sell any securities or other financial instruments or provide any investment advice or service.
Plans for the Nimiq 2.0 hard fork process
26 Aug By Team Nimiq
New report for the period following June 2019
12 Aug By Team Nimiq
NimiqX, NimiqChina and Community Hackathon Organization
12 Aug By Community Board